News Column

KTAM gears up for big asset boom in second half

July 10, 2014

By Nuntawun Polkuamdee, Bangkok Post, Thailand

July 10--Krung Thai Asset Management expects to increase its assets under management (AUM) by 74 billion baht in the second half this year to meet its target of 105 billion in new AUM this year.

Chief executive Chavinda Hanratanakool said the new assets will be accumulated from investment in short-term fixed income, property and infrastructure funds.

The firm's AUM as of June 2014 stood at 576 billion baht, an increase of 30.8 billion from last year.

Investment in mutual funds gained 39.6 billion baht and property funds rose by 15.22 billion baht, but investment in provident funds dropped 20.6 billion and private funds fell 3.39 billion.

If the company achieves its AUM target this year, its total AUM would be 650 billion baht.

KTAM plans to boost AUM growth by launching a property fund and an infrastructure fund. The combined value of the funds would be 20 billion baht, while provident fund, term fund and rollover short-term fixed income fund value will total 4 billion.

"We also plan to expand KTPLUS, the global and local short-term fixed income fund, from 11.8 billion baht to 20 billion by year-end," said Ms Chavinda.

The company will team up with parent Krung Thai Bank to expand its unit-selling channels and hire 40 more agents to sell its products nationwide.

Chief investment officer Veera Vutthikongsirigool said investor confidence has been gradually restored after the coup, as the junta's focus has clearly been on the reviving the economy in the short term.

"The speed of rice pledging payments and plans for the accelerating fiscal budget disbursements and the infrastructure investment scheme have helped build confidence," said Mr Veera.

KTAM cut its export growth projection to 3.5% this year, down from 6%, while its GDP growth outlook is 1.1% this year and 5.2% next year. It expects interest rates will stay at 2% until mid-2015.

He said the base SET target for the next 12 months is 1,580 points assuming the economy follows its model, with the SET rising to 1,680 points in 2015 with a price-to-earnings ratio of 15 times. Mr Veera expects the market will return 16% in 2015.

"We still overweight the Thai shares market because we believe the economy will recover rapidly, with potential growth sectors banking, property and construction, while we underweight energy and petrochemicals as the pricing upside is less than the market average," he said.


(c)2014 the Bangkok Post (Bangkok, Thailand)

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Source: Bangkok Post (Thailand)

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